Ruchi Soya Share Shoots 10%
Shares of Ruchi Soya Industries Ltd rose 10 percent on Wednesday after the board of directors approved the acquisition of Patanjali Ayurved’s food retail business.
Ruchi Soya’s board of directors decided to change the company’s name to ‘Patanjali Foods Limited’ and approved a proposal to acquire the food retail business of Patanjali Ayurved Limited for Rs 690 crore.
On the BSE, the stock rose 9.59 percent to close at Rs 1,186.85, after rising 10 percent to Rs 1,191.30 during the session.
On the NSE, it jumped 9.99 percent to finish at Rs 1,192.15.
Ruchi Soya is part of the Patanjali Group led by yoga guru Baba Ramdev. Patanjali acquired Ruchi Soya Industries Limited in 2019 through an insolvency process.
The Ministry of Corporate Affairs has confirmed the availability of the name Patanjali Foods Limited. So the company will not find any major hurdle in the name change process.
In a regulatory filing, Ruchi Soya said it has entered into a “Business Transfer Agreement” with Patanjali Ayurved to acquire the latter’s food retail business as a continuity based on a downturn.
The food distribution of Patanjali Ayurved consists of manufacturing, packaging, labeling and retailing of certain food products along with factories in Padartha, Haridwar and Newasa, Maharashtra.
Indeed, the acquired food business includes 21 major products: ghee, honey, spices, juices and atta.
The acquisition is valued at a fair market value (net) of ₹690 crore based on all of the food division’s fixed assets and the respective current assets based on a disappointing sale, Ruchi Soya said in a statement.
